The Energy Regulatory Commission (ERC) has issued show- cause orders to the National Grid Corporation of the Philippines (NGCP) asking it to explain its alleged failure to comply on the contracting of ancillary services (AS).
AS serves as the available generating capacity for dispatch to meet contingency reserve requirements when a power generating unit trips or a transmission interconnection problem occurs.
ERC said in a statement over the weekend the show cause orders were issued last Friday, through case numbers 129, 130 and 131, as NGCP failed to comply with policies issued by the Department of Energy (DOE) in October 2021.
The regulatory body cited three sections of DOE Department Circular No. 2021-10-0031 which NGCP failed to comply: Section 4.2 requiring NGCP to seek approval from the DOE on its AS agreement procurement plan; Sections 7.4 and 7.5 mandating NGCP to seek DOE approval on the terms of reference (TOR) of the AS competitive selection process (CSP); and Sections 7.1 and 7.11 requiring NGCP to complete the AS CSP within six months from
the effectivity of the circular.
According to the ERC, while NGCP was able to issue a TOR and the schedule for the conduct of the AS CSP, the firm has yet to comply with the said provisions.
NGCP was directed by the ERC to file within 15 days upon the receipt of the show cause orders electronically and another five days after through personal service, their verified explanation as to why no administrative penalties should be imposed on the possible violations cited.
NGCP was also asked to include necessary proof that will support its verified explanation. – Jed Macapagal
